1|Page
MAN 4720 Exam 4 LATEST VERSIONS 2025-2026 ACTUAL
EXAM ALL QUESTIONS AND CORRECT DETAILED
ANSWERS |ALREADY GRADED A+
Which of the following statements about corporate governance in
China is false?
A) The Chinese governance system may be tilting toward the
Western model.
B) With increasing frequency, the compensation of top executives of
Chinese companies is closely related to prior and current financial
performance of the firm.
C) The state still uses direct and/or indirect controls to influence the
strategies employed by most firms.
D) Firms with higher state ownership tend to have lower market
value and more volatility in those values over time. - ANSWERS--C)
The state still uses direct and/or indirect controls to influence the
strategies employed by most firms.
Managerial employment risk is the:
A) risk that managers will behave opportunistically.
B) risk undertaken by managers to earn stock options.
C) managers' risk of job loss, loss of compensation, and/or loss of
reputation.
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D) risk managers will not find a new top management position if they
should be dismissed. - ANSWERS--C) managers' risk of job loss, loss of
compensation, and/or loss of reputation.
Research suggests that boards of directors perform better if:
A) the CEO is also the chairperson of the board of directors.
B) the board includes employees as voting members.
C) the board is homogenous in composition.
D) outside directors own significant equity in the organization. -
ANSWERS--D) outside directors own significant equity in the
organization.
The separation between firm ownership and management creates
a(n) __________ relationship.
A) governance
B) control
C) agency
D) dependent - ANSWERS--C) agency
The interests of multinational corporations' shareholders may be
best served when there is:
A) a uniform compensation plan for all corporate executives—both
U.S. and foreign.
B) executive compensation that is primarily based on long-term
performance.
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C) elevation of foreign executive compensation to U.S. levels.
D) a variety of compensation plans for executives of foreign
subsidiaries. - ANSWERS--D) a variety of compensation plans for
executives of foreign subsidiaries.
The governance mechanism MOST closely connected with deterring
unethical behaviors by holding top management accountable for the
corporate culture is:
A) ownership concentration.
B) the market for corporate control.
C) executive compensation systems.
D) the board of directors. - ANSWERS--D) the board of directors.
Research suggests that the activism of institutional investors such as
TIAA-CREF and CalPERS:
A) increases shareholder value significantly.
B) may not have a direct effect on firm performance.
C) is so aggressive that boards of directors have become overly
cautious.
D) has weakened the effect of other governance mechanisms. -
ANSWERS--B) may not have a direct effect on firm performance.
Which of the following statements about corporate governance is
false?
A) Governance is used to establish order between parties whose
interests may be in conflict.
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B) Corporate governance mechanisms sometimes fail to monitor and
control top managers' decisions.
C) Corporate governance mechanisms can be in conflict with one
another.
D) Corporate governance is best achieved with a board of directors
with strong ties to management. - ANSWERS--B) Corporate
governance mechanisms sometimes fail to monitor and control top
managers' decisions.?
The market for corporate control may not be as efficient as
previously thought as recent findings suggest that those firms
targeted for takeover by active corporate raiders are:
A) usually on the verge of bankruptcy.
B) typically underperforming their industry.
C) often performing above their industry averages.
D) always outperforming their industry. - ANSWERS--C) often
performing above their industry averages.
Given the demands for greater accountability and improved
performance, which of the following is NOT a voluntary change many
boards of directors have initiated?
A) Moving toward having directors from different backgrounds
B) Strengthening the internal management and accounting control
systems
C) Compensating directors with stock options rather than with fixed
remuneration
MAN 4720 Exam 4 LATEST VERSIONS 2025-2026 ACTUAL
EXAM ALL QUESTIONS AND CORRECT DETAILED
ANSWERS |ALREADY GRADED A+
Which of the following statements about corporate governance in
China is false?
A) The Chinese governance system may be tilting toward the
Western model.
B) With increasing frequency, the compensation of top executives of
Chinese companies is closely related to prior and current financial
performance of the firm.
C) The state still uses direct and/or indirect controls to influence the
strategies employed by most firms.
D) Firms with higher state ownership tend to have lower market
value and more volatility in those values over time. - ANSWERS--C)
The state still uses direct and/or indirect controls to influence the
strategies employed by most firms.
Managerial employment risk is the:
A) risk that managers will behave opportunistically.
B) risk undertaken by managers to earn stock options.
C) managers' risk of job loss, loss of compensation, and/or loss of
reputation.
,2|Page
D) risk managers will not find a new top management position if they
should be dismissed. - ANSWERS--C) managers' risk of job loss, loss of
compensation, and/or loss of reputation.
Research suggests that boards of directors perform better if:
A) the CEO is also the chairperson of the board of directors.
B) the board includes employees as voting members.
C) the board is homogenous in composition.
D) outside directors own significant equity in the organization. -
ANSWERS--D) outside directors own significant equity in the
organization.
The separation between firm ownership and management creates
a(n) __________ relationship.
A) governance
B) control
C) agency
D) dependent - ANSWERS--C) agency
The interests of multinational corporations' shareholders may be
best served when there is:
A) a uniform compensation plan for all corporate executives—both
U.S. and foreign.
B) executive compensation that is primarily based on long-term
performance.
,3|Page
C) elevation of foreign executive compensation to U.S. levels.
D) a variety of compensation plans for executives of foreign
subsidiaries. - ANSWERS--D) a variety of compensation plans for
executives of foreign subsidiaries.
The governance mechanism MOST closely connected with deterring
unethical behaviors by holding top management accountable for the
corporate culture is:
A) ownership concentration.
B) the market for corporate control.
C) executive compensation systems.
D) the board of directors. - ANSWERS--D) the board of directors.
Research suggests that the activism of institutional investors such as
TIAA-CREF and CalPERS:
A) increases shareholder value significantly.
B) may not have a direct effect on firm performance.
C) is so aggressive that boards of directors have become overly
cautious.
D) has weakened the effect of other governance mechanisms. -
ANSWERS--B) may not have a direct effect on firm performance.
Which of the following statements about corporate governance is
false?
A) Governance is used to establish order between parties whose
interests may be in conflict.
, 4|Page
B) Corporate governance mechanisms sometimes fail to monitor and
control top managers' decisions.
C) Corporate governance mechanisms can be in conflict with one
another.
D) Corporate governance is best achieved with a board of directors
with strong ties to management. - ANSWERS--B) Corporate
governance mechanisms sometimes fail to monitor and control top
managers' decisions.?
The market for corporate control may not be as efficient as
previously thought as recent findings suggest that those firms
targeted for takeover by active corporate raiders are:
A) usually on the verge of bankruptcy.
B) typically underperforming their industry.
C) often performing above their industry averages.
D) always outperforming their industry. - ANSWERS--C) often
performing above their industry averages.
Given the demands for greater accountability and improved
performance, which of the following is NOT a voluntary change many
boards of directors have initiated?
A) Moving toward having directors from different backgrounds
B) Strengthening the internal management and accounting control
systems
C) Compensating directors with stock options rather than with fixed
remuneration
